Andhra Pradesh has announced plans to install battery energy storage systems (BESS) with a combined capacity of 3,000 megawatt-hour (MWh) to strengthen grid reliability and support renewable integration. The rollout will be implemented in phases, with about 1,000 MWh targeted for completion by January 2027. The state government intends to invite tenders shortly and private developers are expected to participate. The plan forms part of the state’s broader energy strategy.

The systems will store surplus solar energy produced during the day and discharge it during peak evening demand, helping to balance supply and demand more efficiently. Officials have identified multiple substations and high renewable energy zones for deployment and plan to co-locate storage with solar and wind projects. The measures are intended to reduce reliance on expensive thermal generation and improve power availability across the state. Operators expect co-located projects to streamline land and transmission requirements.

Authorities estimate that peak power procurement costs could fall from around Rs 10 per unit to approximately Rs 4.85 per unit once the BESS projects are operational. This reduction could translate into annual savings of Rs 4–5 bn for the state distribution companies and is likely to improve their financial health. Battery storage is being positioned as critical infrastructure for managing the intermittency of solar and wind capacity. Analysts say improved dispatch flexibility and lower peak purchases will ease pressure on tariffs.

The initiative mirrors a broader trend among states to deploy grid-scale storage as part of the clean energy transition and to limit spot market purchases during peak hours. With declining battery costs and increasing policy support, the state expects BESS deployment to stabilise the grid, reduce outages and lower overall system costs. Over the medium term the plan should support the expansion of renewable capacity and enhance long-term power reliability.